“A bipartisan group of Minnesota lawmakers is considering a bill that would grant an up-front sales tax break for the construction of large-scale data centers,” the Minnesota Reformer reported April 4.
The legislative proposal (SF4983/HF4929) comes weeks after Meta announced its intention to open a 700,000-square-foot data center in Rosemount, Minnesota, in 2026. The center will rely on 100 percent renewable energy, and Minnesota officials estimate that the $800 million center will generate millions of dollars per year in local tax revenue.
“Minnesota already provides a sales tax break for data centers – companies must currently invest at least $30 million,” the Reformer reported. “The current program provides companies the money through a tax refund, but the proposed bill would create an upfront sales tax exemption for companies that invest at least $250 million in their data center on construction, equipment, software and other costs.”
State Senator Grant Hauschild, a member of the Minnesota Democratic-Farmer-Labor Party who worked for President Barack Obama’s campaign in 2012, said he drafted the legislation to make sure Minnesota stays competitive with bordering states that offer upfront exemptions.
“This is a net benefit,” Hauschild said. “And yes, will there be some sales tax breaks for a business? Sure, but we’ve done that in a lot of other industries to ensure that we have the jobs … and one of the most diversified economies in the country here in Minnesota because we’ve been willing to push the envelope on those things.”